A Christian group building a massive wooden ark in Kentucky inspired by the biblical account of Noah is considering going to court to fight the state's rejection of the project's tax incentives.

President Ken Ham of Answers in Genesis says the loss of the tourism tax rebate would be costly for the Ark Encounter theme park project, but it will continue. Ham says in a statement that two public interest law firms would represent the group if legal action is taken. He says no decision has been made yet.

Kentucky's tourism secretary said Wednesday that the project isn't eligible for tax incentives because employees would be screened on the basis of religion.

Ham says federal and state laws support the group's intention to base hiring on applicants' religious preferences.

Rep. Brian Linder and Sen. Damon Thayer released a statement on the decision Thursday: "We are very disappointed in the decision yesterday by the Kentucky Tourism, Arts, and Heritage Cabinet to deny economic development based incentives to the Ark Project to be built in Williamstown, located in the heart of our districts.

"We also find the timing very suspect. The Ark Project has been in the process for over four years and has always been based upon the biblical account of Noah and the flood. The state is very familiar with the ministry and the success with the Creation Museum in northern Kentucky. Only after the Ark Project bought the needed land and started construction a few months ago did the cabinet begin raising doubt and, in action yesterday, deny the incentives the cabinet had previously indicated would be approved. Their action sets a bad precedent for future economic incentives designed to lure companies and jobs to Kentucky.

"No state money will be given to the Ark Project to build the theme park. The incentives are based upon sales taxes collected from operations once the Ark is operational. A portion, and capped amount, of the sales taxes collected would return to the Ark Project, an incentive to have them locate in Kentucky. I’m positive the state will gladly accept the sales tax that will be generated not only from park attendees, but also to the many hotels, restaurant, and other tourists businesses that will locate in Williamstown and surrounding areas. The proceeds will be disbursed throughout the state to fund needed projects and infrastructure.

"While we do not speak for all Kentuckians, we do believe a great many Kentuckians share in our disappointment with yesterday’s decision."